Many people confuse themselves between cryptocurrencies and crypto tokens. But these two terms are very different from each other.
A cryptocurrency token refers to a category of cryptocurrency representing a digital class asset or specific use. It exists on another cryptocurrency’s blockchain. Tokens are useful for investment, storing value, and making purchases. A company issues these tokens as a unit of value or utility. Tokens present programmable assets or access rights. The organizations manage these tokens through underlying ledgers. Since cryptographic tokens are a collection of rules, they are encoded in a smart contract, known as a token contract.
